Indonesia to Import LPG from Iran

Indonesia plans to import liquefied petroleum gas (LPG) from Iran amid a shortage of LPG supplies in various regions of the country.

The Indonesian government will import 588,000 tons of LPG during the 2016 to 2017 period through state-owned oil and gas company Pertamina, Antara News reported on Monday.

Director of Pertamina Dwi Soetjipto said a memorandum of understanding (MoU) on the gas business deal is expected to be inked this month or in August.

According to the deal, the National Iranian Oil Company (NIOC) will supply 88,000 tons of gas in 2016 and 500,000 tons in 2017 to Pertamina.

Iran has been building up access to a growing fleet of very large gas carriers, enabling the country’s producers to export LPG to Asia.

The Islamic Republic, which holds the world’s third-largest proven oil reserves and the largest natural gas reserves, has been trying to enhance its gas production by attracting foreign and domestic investment.

The country is also determined to become the biggest petrochemical producer in the Middle East.